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Valued at a market cap of $318.2 billion, Bank of America Corporation (BAC) is a financial holding company that provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. The Charlotte, North Carolina-based company is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, Apr. 15.
Ahead of this event, analysts expect this financial giant to report a profit of $0.80 per share, down 3.6% from $0.83 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's earnings estimates in each of the last four quarters. In Q4 2024, BAC’s EPS of $0.82 topped the forecasted figure by 6.5%.
For fiscal 2025, analysts expect BAC to report a profit of $3.69, up 12.5% from $3.28 in fiscal 2024. Furthermore, its EPS is expected to grow 17.6% year over year to $4.34 in fiscal 2026.
BAC has outperformed the S&P 500 Index’s ($SPX) 8.9% gains over the past 52 weeks, with its shares up 12.2% during this period. However, it has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 20.4% returns over the same time frame.
On Jan. 16, BAC released its Q4 results. The company reported better-than-expected EPS of $0.82 and revenue net of interest expense of $25.3 billion, marking a strong 134.3% increase in earnings and a 15.4% rise in sales compared to the previous year’s quarter. This robust performance was driven by higher asset management and investment banking fees, along with growth in Net Interest Income (NII) and non-interest income. However, despite these positives, BAC’s shares dipped 1% after the announcement. Investor sentiment may have been dampened by a notable rise in provisions for credit losses and net charge-offs, raising concerns about the bank’s credit quality.
Wall Street analysts are highly optimistic about BAC’s stock, with a "Strong Buy" rating overall. Among 23 analysts covering the stock, 17 recommend "Strong Buy," four suggest “Moderate Buy,” and two advise “Hold.” BAC’s average analyst price target of $52.63, indicates a potential upside of 25.8% from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
